NHS: Contracts

(asked on 18th July 2016) - View Source

Question to the Department of Health and Social Care:

To ask the Secretary of State for Health, what requirements his Department directs NHS organisations to place on direct contractors who sub-contract to other providers.


Answered by
 Portrait
David Mowat
This question was answered on 26th July 2016

The Department advises National Health Service bodies that they must comply with the Procurement Contracts Regulations (PCR) 2015. Regulation 71 requires the prime contractor to provide the contracting authority with names and contact details of personnel in the supply chain. Additionally, regulation 113 requires a contracting authority to place an obligation on the prime contractor to pay undisputed invoices in 30 days down the supply chain.

The Crown Commercial Service has published guidance on paying undisputed invoices in 30 days. The following link takes you to the Crown Commercial Service guidance:

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/524355/Paying_undispute_invoices_within_30_days_in_supply_chain.pdf

The Department has developed standard NHS terms and conditions for use by NHS bodies procuring non-clinical goods and services from commercial suppliers. Clause 9 ‘Price and payment’ places an obligation on the prime contractor to pay undisputed invoices to its sub-contractors within a period not exceeding 30 days. Clause 28 ‘Assignment, novation and subcontracting’ covers 30 day payment terms for sub-contractors. This clause also states the prime supplier shall endeavour to pay its relevant sub-contractors within a comparable timeframe from receipt by the supplier of such undisputed invoices from its sub-contractors. The following link takes you to the full suite of the NHS Terms and Conditions including the overarching guidance note:

https://www.gov.uk/government/publications/nhs-standard-terms-and-conditions-of-contract-for-the-purchase-of-goods-and-supply-of-services

Additionally, NHS England mandates that any clinical services commissioned by clinical commissioning groups (CCGs) are on the terms of the NHS Standard Contract, which prohibits sub-contracting without the prior written consent of the CCG. The CCG may require approval of the form of sub-contract used, but NHS England does not and cannot itself prescribe the form of sub-contract (although it does publish a template which the CCG may require its provider to use when sub-contracting). Notwithstanding any sub-contracting, the commissioned provider remains responsible to the CCG for delivery of the service.

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